Country presentation on Experience in Compiling GDP by Household Final Expenditure

1. International Workshop on Measuring GDP by Final Demand Approach, Shenzhen, China, 25-27 April 2011 Country presentation on Experience in Compiling GDP by Household Final Expenditure Department of Statistics, Ministry of Planning and Investment Lao People’s Democratic Republic (Lao PDR)

2. Presentation Outline • Brief background on GDP by expenditure approach • Measuring the final consumption of household • Problem and challenges of measuring the final consumption of household • Plan for improvement

3. 1) Brief background on GDP by expenditure compilation • Periodicity GDP by expenditure approach is estimated in every five-year, as the Lao Expenditure and Consumption Survey (LECS) conducted interval 5 year, started from 1992/1993 and 2007/2008 • Data sources • Government Financial Statistics, Ministry of Finance on annual basis • LECS (1992/1993-2007/2008) 5 year interval • Establishment survey on annual basis (2002-2007), Economic Census (2006) • Other administrative report on annual basis • Data collection method • The consumption and expenditure LECS collected from Household base on daily method • Others expenditure item used the recall method

4. 2) Measuring the final consumption of household • Final consumption of households is estimated base on COICOP on 7 digits and 12 Groups 01 - Food and non-alcoholic beverages 02 - Alcoholic beverages, tobacco and narcotics 03 - Clothing and footwear 04 - Housing, water, electricity, gas and other fuels 05 - Furnishings, household equipment and routine household maintenance 06 - Health 07 - Transport 08 - Communication 09 - Recreation and culture 10 - Education 11 - Restaurants and hotels 12 - Miscellaneous goods and services

5. 2) Measuring the final consumption of household (Cont) • Final consumption of households Households Final consumption by sources = + Production for own consumption + Expenditure + Bartered + Received in kind (Production for consumption, Expenditure , Bartered and Received in kind estimated from daily method recorded; the durable goods of household expenditure estimated from recall method from household module )

6. 3) Problem and challenges of measuring the final consumption of household • Insufficient data and data sources for household compilation on annual basis • Staff shortage and lack of competent, capacity for SNA concept compilation, data analysis and integrity (Administrative data) and data computation • Only CPI is available , PPI, WPI not available

7. 4) Plan for improvement Under the Statistics Law and Strategy for the Development of National Statistical System 2010-2020 • Improve the organization from division upgrade to department under Lao Statistics Bureau • Formulate a working program for the economic statistics data development to serve the needs of national account compilation according to the 1993 SNA and 2008 SNA • Study and improve data collection system as well as next LECS 2011/2012 • Staff recruitment and enhance staff capacity building by different means • Improve the coordination between DOS and line ministries • Develop compilation method to support to estimate the annual household expenditure as well as the annual GDP expenditure approach

8. Thank you